In brief
President Peña announced his resignation on Thursday following the failure of digital lender Ueno Bank, which left millions of customers unable to access funds. Lawmakers are debating impeachment, with former President Horacio Cartes urging action, while the Central Bank has begun resolution proceedings against the failed bank. The political fallout includes the resignation of the central bank chief and arrests of Ueno executives.
Paraguay’s President Santiago Peña announced his resignation on Thursday, following the collapse of digital lender Ueno Bank that left around three million customers without access to their accounts. The move came after mounting pressure from lawmakers, protesters and former President Horacio Cartes, who called for Peña’s impeachment. The country’s central bank has initiated resolution proceedings and the case is still unfolding.
According to Xinhua, Peña issued a video on the social media platform X announcing,
I have decided to submit my resignation as president of the republic.The outlet said he cited the need to safeguard national stability, social peace and democratic institutions. Xinhua further noted that Peña apologized, “expressed hope that depositors’ savings would be returned and public funds protected.”
Al Jazeera reports a similar announcement but frames it within the broader context of protests and accusations of mismanagement. The outlet records a statement by Peña that he is stepping down “with the stability of our country, social peace and the need to preserve our democratic institutions in mind.” Al Jazeera also quotes Lucia Newman, Latin America editor, saying,
He is accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent.Newman adds that the congress is “trying to impeach the president and the vice president” and that some outside voices urge the congress not to accept the resignation because they want a trial.
The Central Bank’s intervention followed a determination that Ueno’s solvency ratio had fallen to less than half the required minimum. The bank’s applications and cards ceased functioning after the intervention. Xinhua reports that the central bank’s resolution effort began on Tuesday and that the bank had nearly three million customers as of June.
On Wednesday, a group of 35 lawmakers filed a proposal to initiate an impeachment motion against Peña and Vice President Pedro Alliana. They accused the president of conflict of interest stemming from his stake in Ueno Holding, which he retained until 2025, and alleged institutional cover‑ups. The motion was presented after former President Cartes, Peña’s political mentor and leader of the ruling Colorado Party, publicly declared his support for impeachment.
The fallout from the crisis has also impacted the country’s banking leadership. The central bank chief Carlos Carvallo resigned at Peña’s request, according to Xinhua. Prosecutors ordered the arrest of eight Ueno Bank executives, and all were subsequently detained, the outlet said.
Public reaction has ranged from widespread protests to calls for a comprehensive investigation. Al Jazeera reports that protests erupted after the collapse, demanding that the president be tried and that the responsibility of the bank’s failure be clarified.
While the central bank’s resolution proceedings are in progress, the impeachment debate continues. Both sources note that the next steps involve congressional hearings and the potential convening of a special session to determine whether impeachment proceedings should formalise.
As the political crisis unfolds, the focus remains on restoring public confidence in the banking system and ensuring that the deposit guarantee fund fulfills its purpose, according to statements made by President Peña in his resignation address.
